PETALING JAYA: About RM2 billion in bids for power plant project in Pulau Indah, Selangor has been opened up following Tadmax Resources Bhd's (Tadmax) partnership with Korea Electric Power Corporation (KEPCO).
The partnership, valued to have a total of RM3.5 billion in investments, will result in 25 per cent of the total shareholding belonging to KEPCO, South Korea's largest state owned public utility company.
"The value of the 25 per cent shareholding cannot be divulged at this point of time yet as it is subject to the tariff to be approved by the government and the Energy Commission.
"However, we do not foresee a higher tariff moving forward as the liberalisation of the power industry in finally taking effect with more independent power producer (IPP) awarded more contracts.
"KEPCO was among the four final contenders we have received offers from and we have decided to partner with them based on their strong government backing of 51 per cent with assets amounting to US$147 billion and annual revenue of US$50 billion," said managing director Datuk George Mathews.
Yesterday, Tadmax announced its partnership with KEPCO to Bursa Malaysia after receiving a Conditional Letter of Award to build a 1400MW (Dual-Fired) Combined-Cycle Power Plant (CCPP) from the Energy Commission on August 2, 2017.
The CCPP is to be sited on a 60 acres land owned by TIP at Pulau Indah, Klang Selangor and comprises of two blocks of combined-cycle gas turbine with natural gas as the main fuel and distillate as the back-up fuel.
The CCPP consists of the overall design, procurement, construction and commission to be executed on a turnkey basis and the generated power will be sold to Tenaga Nasional Berhad (TNB) through a Power Purchase Agreement (PPA).